Tobin tax in 11 euronations: the beginning of the end?

Van 't Beste

Newbie
8 1
For options and futures traders around the globe,

Does this tax mark the end of our business? Do you count on the financial powers and states with more clever politicians to impede its implementation?

Your opinion please! (y)
 
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fatowl

Junior member
33 0
I don't trade options or futures on forex, but a tax on currency exchange sounds like the powers-that-be are are just trying to siphon off wealth wherever they can!
 

Van 't Beste

Newbie
8 1
Such a tax will probably never be implemented globally, or is that wishful thinking?
I mean like countries with an ambition to become financial superpowers (China and Russia for instance) will most likely send taxes like these right to the bin!
 

DionysusToast

Legendary member
5,963 1,499
London won't do it IMO - if Germany does, Eurex will move there.

I reckon UK would leave the Euro rather than implementing this.
 

Van 't Beste

Newbie
8 1
London, Singapore, Hong Kong, Toronto,.. and other financial cities will never let this happen according to you? The industry is as such certain of its further existence?
 

DionysusToast

Legendary member
5,963 1,499
London, Singapore, Hong Kong, Toronto,.. and other financial cities will never let this happen according to you? The industry is as such certain of its further existence?

I didn't mention anywhere other than London did I?

Nothing to do with "the industry", very much to do with "the government" in the UK. The industry wouldn't really need to lobby against this in the UK because the government can't afford for it to go elsewhere.
 
L

Liquid validity

0 0
I didn't mention anywhere other than London did I?

Nothing to do with "the industry", very much to do with "the government" in the UK. The industry wouldn't really need to lobby against this in the UK because the government can't afford for it to go elsewhere.

As far as the current govt. goes, that is perfectly true,
in fact Osbourne has hinted the UK would not support the FTT
even with global adoption:
Govt tells banks it will not support EU's financial transaction tax | News | Money Marketing

The same certainly can not be said of Labour though:
Miliband gives support on financial transaction tax | News | Money Marketing

More recently, Labour support of the FTT is not going away:
The UK could support an FTT by 2015 | International Tax Review

Also, Labour have been pushing for support in America:
Labour pushes Democrats for a Robinhood Tax | Liberal Conspiracy
IPS – Europeans Urge U.S. Action on Financial Transaction Tax | Inter Press Service

Although Obama's stance is unclear, and control of congress is split anyway, adoption in the U.S. unlikely:
After Campaign by Nurses, Allies, Obama Shifts Stance on Financial Transaction Tax | National Nurses United
Obama goes after Wall Street but is silent on FTT | EurActiv
Who Controls Congress | UAW

Even if the FTT did happen in the UK, FX and spreadbetting seem to be off the
target list for now anyway.
Bonds and derivatives are the current targets.
 

Splitlink

Legendary member
10,850 1,233
I shall cross that bridge when I come to it.

However, nothing would surprise me. Everything that was sacred, including bank deposits, are being taxed and, if the country concerned is in dire straits, everyone and everything in it will be taxed, some things sooner than others.

The best way to avoid paying tax is to be skint.

My dad often made the statement to me "They won't let you die but they won't let you live, either".

If he was alive today he might revise that. "They" don't give a damn whether you live, or die but, if you leave enough for funeral expenses, they will have slipped up, somewhere.
 
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Splitlink

Legendary member
10,850 1,233
I'd rather prepare for that before, or if, the bridge is built ;)

The best laid plans of mice and men......

What are you going to prepare for? Spend as you go is the best preparation you can find, preferably with a Visa!

Hey! :clap::clap: Cheer up, it may never happen!
 
L

Liquid validity

0 0
The best laid plans of mice and men......

What are you going to prepare for? Spend as you go is the best preparation you can find, preferably with a Visa!

Hey! :clap::clap: Cheer up, it may never happen!
Prepare based on the assumption the FTT will happen in the UK.
Thats why I am basing everything I do on FX atm.
If it doesn't happen, no loss.

True about plans, but if you make none, thats even worse.
Then you are floundering, looking for an alternative, instead of already having one in place.
I can guarantee you every firm in Europe will already have pans in place and won't be leaving it to chance.
Cheer has nothing to do with it,
Its purely anticipation.
 

Van 't Beste

Newbie
8 1
Many thanks for the interesting replies!
So even when the politics (obviously driven by populism) shift in the UK and US, they will most likely lose the supremacy of the City and Wall Street bringing great opportunities for other countries (like Russia or China) to establish FTT-free financial centres, leading to wealth and hope for them and for traders around the globe.

This is how I hope/think it shall unfold. A global FTT is nothing more than a bad dream and no realtiy, nor will it ever be reality!
This debate is great to have though and everyone on this forum should be aware of what an FTT could bring!
 

Splitlink

Legendary member
10,850 1,233
Prepare based on the assumption the FTT will happen in the UK.
Thats why I am basing everything I do on FX atm.
If it doesn't happen, no loss.

True about plans, but if you make none, thats even worse.
Then you are floundering, looking for an alternative, instead of already having one in place.
I can guarantee you every firm in Europe will already have pans in place and won't be leaving it to chance.
Cheer has nothing to do with it,
Its purely anticipation.

Well, I hope you don't go offshore, to a place like Cyprus. Lots of well-run companies went there and people like me---didn't.

That is not to say that people like me know everything. In fact, no one knows what to do for the best, because those governing make the rules when convenient to themselves---something that we cannot do.

I am not wishing anyone here any harm. What I am trying to say is that sometimes it is best to do nothing. I am not hoping that that bridge has been built because it has been, otherwise I would not have planned to cross it when I get to it. What I cannot know is whether it has been burnt when I get to it. That, no one can know.
 
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L

Liquid validity

0 0
Well, I hope you don't go offshore, to a place like Cyprus. Lots of well-run companies went there and people like me---didn't.

That is not to say that people like me know everything. In fact, no one knows what to do for the best, because those governing make the rules when convenient to themselves---something that we cannot do.

I am not wishing anyone here any harm. What I am trying to say is that sometimes it is best to do nothing. I am not hoping that that bridge has been built because it has been, otherwise I would not have planned to cross it when I get to it. What I cannot know is whether it has been burnt when I get to it. That, know one can know.
Fair enough, I know what you mean :)
I agree on Cyprus, thats the last thing I had in mind.
This is more what I was getting at:
http://www.trade2win.com/boards/forex/172434-how-can-you-not-make-money-lmax.html
 
 
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